A Person can open a New Business in following ways
1. Open a Sole Proprietorship Business
Example
A Doctor runs a practice as sole proprietorship.
An Architect runs a firm as sole proprietorship.
Kirana Business, Garments Business, Building Materials, many other types of business runs under sole proprietorship.
Freelancing work as consultant also can be a properietorship.
A sole proprietorship is less complicated and less compliance burden.
But a sole proprietorship generally don't get a big business as many users don't trust on Proprietorship.
Registration to be taken for opening a Proprietorship :-
Gumasta/ Udyam Aadhar MSME
GST Certificate
General Compliance for sole proprietorship:-
Monthly GST Filing
Yearly ITR
Yearly books of accounts
2. Open a Partnership Firm
When 2 or more people wants to run a business together with sharing basis they go for a partnership firm registration
Example
Many Doctors runs hospital under partnership
Lawyers firm are under partnership firm
Trading, manufacturing, consulting firm under partnership.
Easy to register a partnership firm and with less compliance burden
But partnership firm carry unlimited liabilities means authorities can attach personal assets of the partners in case of default made by partnership firm
Partnership firm don't carry legal entity.
General Registration for partnership firm:-
Gumasta/ Udyam Aadhar
Partnership deed and PAN
GST registration
Tds registration
General Tax Compliance by partnership firm:-
Monthly GST filing
Quarterly tds filing
Yearly ITR -5 filing
Monthly Books of accounts
3. Open a LLP Limited Liability Partnership Firm
When 2 or more people wants to run a business together with sharing basis they may go for formation of LLP Firm not a partnership firm
LLP is a kind of registered partnership firm registered on MCA Ministry of Company Affairs.
LLP is reliable in the view of the stakeholders.
Example
Lawyers firm operates under LLP firm
Trading, manufacturing, consulting firm under LLP Firm.
Easy to register a LLP firm and with less compliance burden
But LLP firm carry limited liability.
LLP firm carry legal entity.
General Registration for LLP Firm:-
Incorporation of LLP on MCA
Gumasta/ Udyam Aadhar
LLP Agreement and PAN
GST registration
Tds registration
General Tax Compliance by LLP firm:-
Monthly GST filing
Quarterly tds filing
Yearly ITR -5 filing
Monthly Books of accounts
Yearly ROC Filing and partner KYC
Audit if turnover more than 40 Lakhs.
4. Open an OPC One Person Company Private Limited
When a single person wants to Open a registered business, he or she can incorporate OPC company.
It is registered on MCA.
OPC data is publicly available on MCA so users relies on your company.
Example
OPC Consultation
OPC Interior Designer
OPC Medical
OPC traders
OPC HR Firm
Many more Types of business... under OPC can be done.
Red Point - There is Only one shareholder in OPC means you cannot dilute your shareholding to your investor.
General Registration for OPC:-
Incorporation of OPC on MCA with PAN and TAN
Gumasta/ Udyam Aadhar
GST registration
General Tax Compliance by OPC:-
Monthly GST filing
Quarterly tds filing
Yearly ITR -6 filing
Audit is mandatory
Accounting is mandatory with edit logs
Yearly ROC Filing and director KYC
4. Open a Private Limited company
When a two and more person wants to Open a registered business, they can incorporate Private limited company.
It is registered on MCA.
Private limited company data is publicly available on MCA so users relies on your company.
Example
Consultancy business, digital marketing agency, HR agency, hotel business, trading and manufacturing business, courier business many more runs under private limited company
Private limited company is best for dilution of shareholding to new investors.
General Registration for Private Limited company:-
Incorporation of Private limited company on MCA with PAN and TAN
Gumasta/ Udyam Aadhar
GST registration
General Tax Compliance by OPC:-
Monthly GST filing
Quarterly tds filing
Yearly ITR -6 filing
Audit is mandatory
Accounting is mandatory with edit logs
Yearly ROC Filing and director KYC.
